Tipster Pleads Guilty In Hedge Fund Insider Case

Sep 5 2012 | 10:00am ET

Prosecutors have won yet another guilty plea—and another cooperating witness—in their insider-trading crackdown.

Hyung Lim, a former Altera Corp. executive, admitted yesterday that he passed confidential information to Whittier Trust Co.'s Danny Kuo. Kuo then allegedly passed those tips to three hedge fund employees, including the co-founder of Level Global Investors.

Both Lim and Kuo, who pleaded guilty in April, will testify against Anthony Chiasson, former Diamondback Capital Management portfolio manager Todd Newman and SAC Capital Advisors analyst Jon Horvath. That trial is set to begin on Oct. 29 in New York federal court.

Kim, who was also sued by the Securities and Exchange Commission yesterday, also admitted to passing confidential tips about Nvidia Corp.—the stock at the heart of the case against Chiasson, Newman and Horvath—that he received from a friend in that company's accounting department.

"I knew that Kuo wanted the Nvidia information so that others could trade Nvidia stock," Lim told the court. "In return for providing this information to Kuo, I received cash and other items of value from Kuo, including material nonpublic information concerning other publicly-traded technology companies, which I used to trade on my own account." Kuo also helped pay for Lim's gambling habits, covering his debts and even wiring $5,000 to a Las Vegas casino on one occasion.

Lim allegedly earned or avoided losses of at least $90,000 with those tips. Prosecutors have said that the "criminal club" earned more than $60 million in illegal profits.

Lim, who met Kuo at poker games organized by a mutual friend, pleaded guilty to conspiracy to commit securities and wire fraud. He faces up to 25 years in prison when he is sentenced and remains free on $100,000 bond.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.